Mahoning Truck Operation Closes 40 Employees Expected To Be Out Of Work

June 25, 1986|by ROBERT FLEXER, The Morning Call

More then 40 employees of International Distribution Center are expected to be out of work today as the New Jersey company closes its Mahoning Township trucking location.

Although the employees were left without work, IDC President Gerald Eskow said an unknown number of employees may be hired by New England Motor Freight, a trucking firm with a terminal outside of Philadelphia.

"The company is hiring them," he said. "Whoever wants to work can."

Eskow also stressed that people awaiting merchandise from IDC will receive it on time. Eskow said the New England company has agreed to transport the items.

Truck and Trailer Maintenance, a subsidiary of IDC, will continue to operate at the Mahoning Township location, Eskow said. The company repairs mainly IDC equipment, but does handle repair for other companies outside of IDC, Eskow said. About 20 of the 68 people that work at the Mahoning Township location, are employed by Truck and Trailer Maintenance.

The company president said the Mahoning Township operation and those at three other locations in the eastern United States were forced to close in part because of a lack of insurance.

The North Bergen, N.J., company was left without the necessary insurance to haul merchandise outside of that state when an insurance carrier said a $200,000 premium for coverage would have to be paid at one time, according to Eskow, who said the company could not meet the payment.

As a result, the Interstate Commerce Commission told the company to discontinue service because cargo insurance could not be obtained.

In addition, the company has been unable to collect a multimillion-dollar antitrust award that it received, according to Eskow.

In 1984, a federal jury in New York awarded $39.6 million to the company after it charged that a competitor had set out in November 1982 to destroy IDC's apparel shipping route between New York's garment district and Allentown, Scranton and Wilkes-Barre.

In August 1985, the federal judge upheld the antitrust award against Walsh Trucking Co., also of North Bergen, but trimmed the award to about $38.2 million.

A total of 231 people will lose their jobs because of the closings. In addition to Mahoning Township, hauling operations at Easton, Mass; Hialeah, Fla.; and North Bergen are scheduled to end.

Eskow said a number of employees would remain at the Mahoning Township location until the company completes its shutdown.